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A-EU FTA Exceptions Chapter's relevance to the Trade and Sustainable Development Chapter

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Status: Answered, finished
Asked by: Senator the Hon. Matthew Canavan
Portfolio: Foreign Affairs and Trade
Agency: Department of Foreign Affairs and Trade
Round: 2026-27 Budget estimates
Question No: 170
Asked: 3 June 2026
Answer due: 23 July 2026

Question

1. Can DFAT identify the specific article in Chapter 23 that applies to Chapter 18? 2. Does DFAT accept that Article 23.1 does not list Chapter 18 among the chapters covered by the general exceptions? 3. If Chapter 23's general exceptions do not apply to Chapter 18, on what legal basis did DFAT tell the committee that the exceptions chapter protects Australia's national interest flexibility in relation to Paris and NDC obligations? 4. Does DFAT accept that Article 18.6 requires Australia to effectively implement the Paris Agreement, including commitments with regard to its NDCs? 5. Does DFAT accept that Article 24.17 allows suspension of obligations where a party fails to comply following a finding of a breach of Article 18.6? 6. What advice has DFAT sought or received on whether a future Australian decision to reduce an NDC, repeal net zero, or weaken domestic climate laws could be challenged by the EU under Chapter 18? 7. Will DFAT table the legal advice supporting its claim that the exceptions chapter preserves Australia's ability to regulate in the national interest in relation to Paris and NDC obligations? 8. Article 23.1 incorporates GATT Article XX into the A-EU FTA for the purposes of specified chapters - trade in goods, customs and trade facilitation, investment liberalisation, digital trade, energy and resources, and state-owned enterprises. Can DFAT confirm GATT Article XX is not incorporated for the purposes of the Trade and Sustainable Development Chapter? 9. Is DFAT's position that the EU could never challenge an Australian change to its NDC's under this agreement?

Answer

Please see attached answer.

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